A DEAL has been struck for the sale of an historic hotel in a scheme which could bring 50 jobs to the district.

Northern Powerhouse Developments has agreed to purchase Gilsland Hall Hotel from the Co-op, which has owned the building and its grounds for more than 100 years.

The Halifax-based firm has vowed to transform the 19th century hotel into a premier venue with a major refurbishment programme.

Ambitious plans include the construction of a new building within the existing grounds to accommodate spa facilities and a swimming pool.

NPD managing director Mark Bowness said the work would create employment, while existing staff at the hotel would be retained as part of the new venture.

Until a change to its current name 18 months ago, the hotel was previously known as Gilsland Spa.

Mr Bowness said the firm was keen to reinstate the word “spa”, and that a new name was likely to be Gilsland Country Spa.

Rumours circulating locally had suggested Eden Country Hotel Spa as a possible title, but Mr Bowness said this was a temporary name which had been used for marketing purposes ahead of the sale.

He added: “This is a stunning place, but it needs investment. We want to breathe new life into the hotel, and create a premier standard venue that the district can be proud of.

“Everything is there with the location and the history with the sulphurous spa, and now we want to bring spa facilities to Gilsland.”

The scheme would include a facelift for the hotel’s 86 bedrooms, as well as the function room.

A second restaurant would be created within the existing building, which will continue to host weddings and functions.

The Co-op Group’s Chris Somme said running hotels was not part of the group’s core business. He added: “We’ve exchanged contracts on Gilsland Hall and expect to complete the sale by the end of the year.”